HSBC UK has reported a pre-tax profit of $1.71bn (£1.28bn) in its Q1 results, a figure up from $1.66bn in the previous quarter, but down from $1.81bn in Q1 last year.

The bank also said its UK business saw customer lending increase by $2bn in the opening three months of the year, driven by “continued growth in mortgage balances”.

While HSBC reported growth in its UK operations in a Q1 trading statement, the bank signalled concern around the global impact of higher trade tariffs in the US on economic growth and inflation.

HSBC’s pre-tax profit across the entire bank decreased by $3.2bn to $9.5bn compared with Q1 2024, although this was primarily due to costs relating to the group’s disposals of its banking businesses in Canada and Argentina.

Globally, the bank did report strong performances in its wealth management business, particularly in its Hong Kong business segments, as well as in foreign exchange and debt and equity markets in its corporate and institutional banking segment.

“Our strong results this quarter demonstrate momentum in our earnings, discipline in the execution of our strategy and confidence in our ability to deliver our targets,” HSBC CEO, Georges Elhedery, said. “We continue to support our customers through this period of economic uncertainty and market unpredictability, which we enter from a position of financial strength.”

Senior equity analyst at Hargreaves Lansdown, Matt Britzman, commented that HSBC had “kicked off the year with a bang” by beating its Q1 expectations.

“A big part of that outperformance came from strong fee income in areas like currency trading and wealth management – two bright spots that helped support a solid showing from its more traditional banking operations,” Britzman said.

“The numbers are a bit noisy thanks to the sales of its Canadian and Argentinian businesses, which makes year-on-year comparisons a little tricky. But strip out the noise, and the underlying performance looks strong.”

He added: “The fact that full-year guidance is staying put after a strong quarter reflects the challenges ahead, but it’s also a solid vote of confidence from the top. Loan demand might stay sluggish, but with multiple income streams, HSBC isn’t leaning too hard on one part of the business. In a choppy environment, that kind of diversification is an asset.”

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